Bitcoin's price surge and substantial investments into exchange-traded funds suggest robust demand, although increasing borrowing levels may trigger a price correction down to around $117,000.

Bitcoin Rally and ETF Influence

Bitcoin’s recent rally is primarily fueled by spot Bitcoin ETF inflows and increasing futures volumes, pushing nearly all circulating supply into profit. Institutional demand is evident through these inflows, contributing to the price discovery process. Onchain data indicates a significant accumulation zone around $117,000.

Profitability and Potential Consolidation

Approximately 97% of Bitcoin's supply is currently in profit, indicating broad unrealized gains among holders. This high profit ratio often precedes consolidation periods, which could temporarily slow momentum. Traders are advised to monitor metrics and manage risk accordingly.

Key Support Levels and Risks

Structural support for Bitcoin is concentrated between $121,000 and $120,000, with a crucial defense level near $117,000. Increased leverage and funding rates pose short-term risks, potentially leading to sharper price movements. Close attention to these factors is essential for assessing potential pullbacks.

Monitoring for Stability

Traders should track cost basis distribution, ETF inflows, futures volumes, and leverage metrics. Sudden spikes in funding or rapid withdrawals could signal a correction. Focusing on these indicators will assist in evaluating overall stability and informing trading decisions.